This is a linear equation y = mx+b, where m is the slope and b, the y-intercept. Since we know this graph passes through A(1,4) and B(5,6), we can find easily the equation:
1st- Calculate m = (y₂-y₁)/(x₂-x₁) → m = (6-4)/5-1) = 2/4 →m =1/2 Now y = (1/2) + b.
2nd. To calculate b, replace x and y by either the coordinate of A(1,4) or B(5,6) Let's take A where x = 1 and y = 4 for instance: y =(1/2)x + b 4=(1/2)(1) + b 4=1/2 + b 4-1/2 = b and b= 7/2
Ann Nguyen would like an installment loan for 5,000. Her bank will loan her the money at 12% for 18 months. Her insurance company will loan her the money at 12% for 24 months. Which loan would cost her less?